Key Points
- Ethereum (ETH) price is aiming for $5K following a bullish breakout driven by whale investors.
- Bitcoin (BTC) rallied to a new all-time high (ATH) above $106K, indicating a possible macro bull rally for Ethereum.
Bitcoin’s price surge to a new all-time high above $106K has signalled the start of a macro bull rally for Ethereum.
Ethereum, with a fully diluted valuation of around $476 billion and a 24-hour trading volume of approximately $30 billion, has successfully retested the bullish breakout from a multi-year pennant consolidation.
Future Projections for Ethereum
After a strong rebound in the past two months, Ethereum is well positioned to retest its all-time high near $5K in the near term.
For Ethereum’s price against the US dollar to continue its bullish trend, it must turn the resistance level around $3,950 into a solid support level.
The weekly Relative Strength Index (RSI) must rise above the 70 percent level to confirm the bullish trend.
A potential Ethereum price correction could see the altcoin fall to the support level of around $3,580 before continuing with the bullish momentum.
Ethereum Whales Betting on Further Uptrend
The demand for Ethereum among whale investors has significantly increased recently, especially after Bitcoin’s price reached a major psychological milestone of around $100k.
According to market data from CoinGlass, the overall supply of Ether on centralized exchanges dropped by more than 177K in the past 30 days to about 15.6 million.
The significant decline of Ether on centralized exchanges is largely due to the rising demand from whale investors led by US spot Ethereum ETFs.
Data from Glassnode shows that Ethereum addresses with a balance of more than 10k Ethers have significantly increased in the past two months.
For example, the Ethereum network offers whale investors a chance to earn passively through staking, as a means to secure the project.
Approximately 34 million Ether have been staked by more than 100K validators.
Meanwhile, the US spot Ether ETFs have seen a net cash inflow of more than $2.1 billion in the past three weeks.
The Bigger Picture
The Ethereum network remains a leader in Web3, with more than $78 billion in total value locked (TVL) and over $110 billion in the stablecoins market cap.
With over 428K active addresses in the past 24 hours, the Ethereum network is well positioned to handle mainstream adoption of digital assets and Web3 projects.
The Ethereum ecosystem has received significant support from the United States, especially with the upcoming Trump administration, which is expected to significantly support the crypto industry.
